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Morgan Stanley Global Consumer Conference Imperial Tobacco Group PLC

15 November 2011

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Certain statements in this presentation constitute or may constitute forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding the Company’s future expectations, operations, financial performance, financial condition and business is or may be a forward-

looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied in any forward-looking statement. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this presentation. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward-looking statements reflect knowledge and information available at the date of this presentation and the Company undertakes no obligation to update its view of such risks and uncertainties or

to update the forward-

looking statements contained herein. Nothing in this presentation should be construed as a profit forecast.

This presentation does not constitute an offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of the Company

nor should it form the basis of or be relied on in connection with any contract or commitment whatsoever.

Disclaimer

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Unlocking Our Potential

Bob DyrbusFinance Director

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Cost Optimisation

Cost Optimisation

Sales GrowthSales

Growth Cash Utilisation

Cash Utilisation

Execution ExcellenceExecution Excellence Future FoundationsFuture Foundations

Sales Growth DriversSales Growth DriversPortfolio

ManagementPortfolio

Management InnovationInnovation PricingPricing Customer EngagementCustomer

Engagement

Consumer CentricConsumer Centric

Key EnablersKey Enablers

Our Strategy

Our Key AssetsOur Key AssetsMarket

FootprintMarket

FootprintTotal

TobaccoTotal

TobaccoBrandEquityBrandEquity PeoplePeople

Delivering Sustainable Shareholder ReturnsDelivering Sustainable Shareholder Returns

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88% cash conversion; free cash flow £1.6bn*

+13% dividend per share

£181m buyback

Cash utilisation

Cost optimisation

sales and profit momentum through Total Tobacco

EU: profit model delivering; Germany +7%, Rest of EU +3%

Non-EU: emerging market momentum; profit +10%

Sales growth

FY11 Highlights

strong tobacco operating margins; above 42%; Non-EU +150bps

ongoing efficiency focus: productivity +3%

* Free cash flow before dividends and share buybacks. Percentage changes reflect underlying constant currency performance

delivering our strategy

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Seeing Things Differently

Doing Things Differently

Unlocking Our Potential

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Sales Growth Drivers

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Fast from idea to implementation

Proactively engaging for rational regulation

Our Key Enablers

Understanding consumer needs

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Maximising Shareholder Returns

Sales

High Margins

Strong Cash Flow

Reinvest

Strong Cash Flow

Sales

Reinvest

Strong Cash Flow

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Sales Growth Drivers

More Consumers, More Occasions

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More Consumers, More Occasions

Brand Equity

Total Tobacco

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Same Consumer, Multiple Needs for Multiple Occasions

Behavioural Opportunities, Motivational Opportunities

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Davidoff

classic line growth post rejuvenation

new variant launches in key growth segments

volumes up in 8 of top 10 markets

♦

+9% Saudi Arabia

♦

+11% Taiwan

♦

+12% Ukraine

♦

+33% Russia

Strong sales momentum

FY11: +6% to 18 billion

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Gauloises Blondes

expanded distribution

+12% top five markets

+28% in North Africa

♦

further gains in Algeria and Morocco

Strong underlying momentum

FY11: +2% to 29 billion*

* Stick equivalents

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West

capitalising on consumer growth segments

emerging market momentum

♦

+8% Russia

♦

+18% Taiwan

Growth in Eastern Europe and Asia

FY11: -2% to 25 billion*

* Stick equivalents

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JPS

another excellent year

growth in 7 of top 10 markets

♦

+8% Germany

♦

+34% UK

♦

>+100% in Australasia

Meeting consumer value trends

FY11: +12% to 24 billion*

* Stick equivalents

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strong value proposition

♦

+49% Route 66

♦

+16% West

♦

+14% JPS

capitalised on Spanish opportunity

♦

Ducados Rubio market leader

Fine Cut Tobacco

Continued strong momentum

FY11: +4% to 41 billion*

* Stick equivalents

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Habanos

strong emerging market growth

excellent momentum in Brazil, Russia and China

+5% sales; +12% sales in Non-EU

Exclusive editions driving sales growth

FY11: +4% volumes in Non-EU

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Sales Growth Drivers

New Consumer Choices

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Incremental Growth Pipeline

.

WSE

Ideal 2014November 2011April 2011

DevelopmentFeasibilityConcept

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High Return Innovation Model

consumer untranslated needs

co-created with consumers

incremental/brand switchers

Total Tobacco, multi-market

product feature improvements

technology based

replacement of slow moving

FMC premiumisation

Industry Mindset Imperial Focus

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Exploiting Scalable Innovation

patented GlideTec innovation

consumer “wow”

effect

initial launch in UK –

Asda, BP, Shell & Esso

significant capacity investment

multi market roll-out planned

Innovation Within Value Segment

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6

7

8

9

10

FY06 FY07 FY08 FY09 FY10 FY11

JPS German Cigarette Market Share

%

FY10Innovation

FY10Innovation

FY11Innovation

FY11Innovation

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West Fusion in Russia

3.0%

Jul 11Jan 11Jul 10Jan 10

0.2%

Oct 09 Apr 10 Oct 10 Apr 11 Oct 11

SE

Vol

umes

(m)

% share of K

S S

SL segm

entgrowth within growth segment

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Sales Growth Drivers

Maximising Revenue Growth

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Enhancing Our Capabilitiesproactively managing pricing and excise

occasion based pricing approach

brand pack price per channel strategies

multivariable scenario modelling

proactive excise management

Think Ahead Innovate & Lead

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15

16

17

18

19

20

HY09 FY09 HY10 FY10 HY11 FY11

% s

hare

of m

arke

tPricing Strategy Drives Growth

Australia UK

0

1

2

3

4

5

FY10 HY11FY09 HY10 FY11

abso

lute

cha

nge

in b

rand

% s

hare

of m

arke

t

Source: Imperial estimates

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Sales Growth Drivers

Availability and Advocacy

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Morocco RTM Strategy

Previous Distribution System New Distribution System

focus on truck and van deliveries

cash and carry’s closed

improved efficiency and customer service

telesales operation for greater delivery capacity

cash and carry deliveries

truck deliveries to rural areas

van deliveries to urban customers

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Outperforming in Dark Markets

Australia increased share by +1.6% to 19.1% in FY11

Norway market share of snus up +0.9% and cigarettes up +0.2% in FY11

trade marketing optimisation

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Sales Growth Drivers

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Maximising Shareholder Returns

Sales

High Margins

Strong Cash Flow

Reinvest

Strong Cash Flow

Sales

Reinvest

Strong Cash Flow

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Morgan Stanley Global Consumer Conference Imperial Tobacco Group PLC

15 November 2011